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This situation is above my pea brain's abillity to figure out. It's a retirement scenario, from CALPERS. I know there are formulas out there to figure this out, I'm just not sure how to use them

The main bread-and-butter retirement money will come from elsewhere, this is sort of extra auxillary money. Soo, can go either way.

CALPERS allows designation of a beneficiary...that can be anyone. So, we plugged in the birth date of youngest offspring, and came up with this:

Scenario one: Do not designate a beneficiary. Would collect an extra $80/month for esimtated life span of 20 years (240 months). Would guess 5% annual return on that money.

Scenario two: Would give up $80 per month to designate a beneficary, and give up the 5% earnings on that money. At end of estimated 20 years, beneficary starts recieving $201 per month, for an estimated 30 years (360 months).

I'm trying to keep it simple. Although inflation factor would play a part in the answer, trying to leave that out. Any imput with figures would be helpful.

There seem to be some pretty bright people on here whom are very good with discounted rates, monthly payments, etc. So if you're bored and want to crank out some numbers on a calculator and see which looks would be much appreciated. Thanx much. Maybe I'll send you some home brew.
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